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Defining CRO (With Beer)


What’s in it for you: Get a simple definition and analogy of conversion rate optimization (#cro)

Estimated read time: 3 min

You and your boss go out to a bar.

He hands you a $20 and tells you to go get some beers. Let’s say the beer he likes is Guinness and it’s $5/pint. You order at the bar and get 4 pints of Guinness. You tip a few dollars from your own pocket.

Your boss is expecting 4 pints back.

Let’s say you’re a smooth talker and over time you’ve tested many lines and now you have that special line to get the bartender to hook you up. Wouldn’t your boss be surprised/impressed that you came back with 5 pints instead of 4?

This resembles the real world of marketing departments. A budget is given for a marketing department and the team is responsible for using that money to hit the projected numbers. What if you took that same budget and delivered more than expected? This is just like taking that $20 and getting 5 pints instead of 4.

Conversion rate optimization is simply that. Take the same resources given and get more out of it by testing what works better than what you currently have going. Through A/B or multivariate testing on the pages of your site, you can start squeezing more conversions from the same amount of traffic. If you can squeeze an extra 10% of sales from your PPC campaigns, and you can prove your case, how happy will your boss be? He gives you $1MM expecting $2MM in sales and you get him $2.2MM because you did something smart about it.

More pints. More sales. More props.

Conversion rate optimization for the win!